Indonesia's Adaro sells coal to Netherlands, Spain amid Russia sanctions

PT Adaro Energy Indonesia Tbk has sold about 300,000 tonnes of coal in the spot market to buyers in the Netherlands and Spain, as the EU is looking for alternative sources of the fuel amid sanctions against Russia, Reuters reported April 18, citing commentary by Adaro CFO Lie Luckman to local media.

The EU approved a ban April 8 covering coal imports from Russia worth €8 billion per year starting in August, in response to Moscow's invasion of Ukraine.

Luckman said coal demand from Europe would likely increase due to sanctions against Russia but the company will remain focused on Asia. China, India, Japan and South Korea are Adaro's top customers, the report said.

"Indeed there has been some demand from Europe, but our market is mainly Asia," Luckman was quoted as saying. "We will focus on fulfilling our commitments to our customers who already have long-term contracts with us."

Adaro sold 51.6 million tonnes of coal in full year 2021, down 5% year over year, although revenue surged 58% to $3.99 billion and core earnings soared 210% to $1.26 billion on the back of strong coal prices.

Analysts have said the EU's ban on Russian coal is unlikely to significantly impact the coal market as there are adequate supplies from other sources. Some traders have continued to buy commodities from Russia, especially for material under contract, according to some industry experts and players.

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